TaxTMI 
TaxTMI 
2023 (12) TMI 1062
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.... confirmed the demand of Rs. 8,82,11,067/- along with interest and penalty. 2. The Appellant is engaged in the manufacture of Iron and Steel products classifiable under Chapters 72 & 73 of the Central Excise Tariff Act, 1985. The main raw materials viz. iron ore, limestone, dolomite etc. required for the manufacture of the final products are received from the Appellant's own captive mines located at various places viz., Kiriburu, Meghahatuburu, Bolani, Manoharpur, Kuteswar, Bhawanathpur etc. In order to undertake mining activities and provide raw material to manufacturing units, the captive mines avails various services at the mines like Cargo handling, mining service, security services, etc. within the mines. These service providers r....
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....he purpose of manufacturing the final dutiable product; SAIL is only responsible for overall management of mines and steel plants. The internal division is merely to facilitate better functioning and administration of the mines and plants. Hence, the mines form an integral part of the SAIL's Steel Plants, by serving as captive mines and supplying necessary raw materials. The Appellant placed their reliance in the case of Hindalco Industries v. CCE & ST., Allahabad 2018 (10) TMI 1733- CESTAT ALLAHABAD, having identical facts to Appellant's case, wherein the Tribunal has held that the Cenvat credit of service tax paid on services availed at mines is admissible to manufacturing units. Accordingly, the Appellant submits that the credit ava....
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....ceived within the premises where manufacture of final product takes places but only provides that services should be used in or in relation to the manufacture of final products. Thus, we find that the Appellant is entitled to avail credit of service tax paid on input services received at the mines, which serves as an intermediate product for manufacture of final product i.e. steel items. 8. We observe that the Issue is no longer res integra as this Tribunal on identical facts and circumstances has decided the same issue in favour of the Appellant in the case of Usha Martin Ltd. v. CCE, Jamshedpur, 2023 (6) TMI 1153 - CESTAT Kolkata. The relevant paras of the said decision are reproduced below: 10. The crux of the issue before us in all t....
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....he services availed at the mines during the relevant period. Nonetheless the revenue proceeded on the premise that the ratio of the decision of the Hon'ble Supreme Court in the case of Vikram Cements (supra) rendered in the context of availability of credit on inputs/ capital goods used in the captive mines could not be applied to input services, requiring receipt and use by the manufacturer under Rule 3 of the CCR. We are not able to appreciate this distinction given that the definition of input services under Rule 2(l) of the CCR is much wider than the definition of input and that unlike the locational restriction carved out for receipt of inputs in the factory of manufacture under Rule 3 no such limitation exists for input services. We a....
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....e to them. We further note that as held by Hon'ble Gujarat High Court in the case of Commissioner of Central Excise Vs Dashion Ltd. (supra) even for the period when Lohardaga unit was yet to register as input service distributor the Cenvat credit distributed by said Lohardaga mine was admissible to the appellant, since Lohardaga mine was part and parcel of the establishment of the appellant............". We find that the ratio of the said decision is squarely applicable to the facts of the present case as well. Our attention has also been invited to another decision of the Madras High Court in the context of admissibility of credit of tax paid on lease rentals, operation and maintenance of Wind Mill situated far away from the assessee's ....